Returning Value Blog

Classifying workers as independent contractors — rather than employees — can save businesses money and provide other benefits. But the IRS is on the lookout for businesses that do this improperly to avoid taxes and employee benefit obligations.

Is your employer withholding enough in taxes?

With Veterans Day on November 11, it’s an especially good time to think about the sacrifices veterans have made for us and how we can support them. One way businesses can support veterans is to hire them. The Work Opportunity tax credit (WOTC) can help businesses do just that, but it may not be available for hires made after this year.

Unemployment tax rates for employers vary from state to state. Your unemployment tax bill may be influenced by the number of former employees who’ve filed unemployment claims with the state, your current number of employees and your business’s age. Typically, the more claims made against a business, the higher the unemployment tax bill.

As a small-business owner have you ever considered outsourcing your bookkeeping services?  Here are 3 good reasons why you might consider outsourcing this function.

Business owners beware

Several filing deadlines have changed beginning this month. Under the 2015 PATH Act, beginning with forms filed in 2017, Forms 1099-MISC, used to report non-employee compensation must be filed on or before January 31 of the year following the calendar year to which such returns relates. And those returns are no longer eligible for the extended filing date for electronically filed returns. (Code Sec. 6071(c)) View 2017 filing instructions for Form 1099-MISC.

Form 1099-MISC: is an Internal Revenue Service (IRS) tax return document that covers reporting for a wide range of payments made to non-employee individuals (e.g., independent contractors) over the course of the year on behalf of your trade or business.  Personal payments are not reportable.

The “final rule” on overtime pay, long anticipated by the business sector, was issued by the U.S. Department of Labor (DOL) this spring. However, changes in the regulations do not formally take effect until December 1, 2016. Because of that, employers still have time to make the adjustments necessary to be in full compliance.

If you’re an employer with full and part-time employees, get ready for potentially big changes in how certain employees may be entitled to overtime pay. The ramifications of new governmental regulations could have a sizeable impact on your bottom line—and if you’re an employer that’s affected, it may not take long to feel the bite.